International Absorbents announced F3Q sales increased by 13% to a record $6 751 000

Dec 12, 2005. /Lesprom Network/. International Absorbents Inc., a leading developer and producer of environmentally-friendly pet care and industrial products, reported financial results for the third quarter and nine months ended October 31, 2005. Sales for the third quarter of fiscal year 2006 increased by 13% to a record $6 751 000, compared to $5 999 000 for the same period in the previous year. Sales for the nine months were $18 717 000 versus $16 995 000 for the same period last year, representing an increase of 10%. Net income for the third quarter of fiscal year 2006 decreased by 77% to $188 000, compared to $736 000 for the third quarter of the fiscal year 2005. For the nine months, net income was $402 000 versus $1 785 000 for the same nine months last year, representing a decrease of 79%. Gross profit for the third quarter of fiscal year 2006 was $1 909 000, a decrease of 23% compared to $2 431 000 for the third quarter a year ago. Gross profit for the nine months was $5 595 000 versus $6 923 000 for the prior nine months, representing a decrease of 20%. Gordon L. Ellis, chairman of International Absorbents Inc., commented on the third quarter, "Sales growth continues with CareFRESH(R) Ultra and CareFRESH(R) Colors providing the strongest gains. Both products are doing very well throughout the pet specialty channel and are helping with the placement of complementary products including our new line of Healthy Pet cat litters. As previously reported, the decline in profit margin over the past year has been due to numerous factors including rising fuel costs, new manufacturing facility commissioning and new product introduction. Focus during the past quarter has been on implementing changes and countermeasures to recover profit margins. The recent commissioning of our new state-of-the- art cost control and overall financial/management software system (ERP) is beginning to assist in this regard. Initial steps have been implemented and minor improvements are already evident. Over the following months additional cost saving measures have been planned including the integration of an alternative energy system in our new Georgia facility. With this alternative energy source in place early next year we anticipate our per unit fuel costs to drop to levels we have not seen for seven to eight years. Overall, we have some challenges ahead but the future looks good." International Absorbents Inc. develops, manufactures and markets patented and proprietary, cost effective consumer and commercial products derived from recycled, renewable materials. These environmentally safe products outperform conventional products used in a broad range of consumer and industrial applications, including retail/commercial pet bedding and litter, oil and hazardous liquid spill cleanup and control, oil/water filtration, and packaging.